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Educational Differences in the Migration Responses of Young Workers to Local Labor Market Conditions

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  • Wozniak, Abigail

    ()
    (University of Notre Dame)

Abstract

It is unclear whether educational disparities in internal migration levels reflect important economic differences or simply different consumption choices. I answer this question empirically by testing for educational differentials in the likelihood that young workers undertake and succeed at arbitrage migration. I find that young college graduates are two to five times more likely than less educated workers to reside in a state with high labor demand at the time they entered the market. Among college graduates, cross-state migration by college graduates equalizes the wage impact of early career labor demand shocks in their home states. This is not true for less educated workers. The lack of wage convergence is most severe for cohorts who entered the labor market during periods of high spatial variation in state conditions and low national employment growth. My results are consistent with theories of educational differences in migration that assume less educated workers are credit constrained, and cast doubt on several other explanations for the difference.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1954.

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Length: 42 pages
Date of creation: Jan 2006
Date of revision:
Publication status: published in: Journal of Human Resources, 2010, 45 (4), 944-970
Handle: RePEc:iza:izadps:dp1954

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Keywords: education; local labor markets; internal migration;

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References

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Citations

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Cited by:
  1. Beartice Brunner & Andreas Kuhn, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals’s Long-Run Wage Profiles," NRN working papers 2009-29, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  2. Beatrice Brunner & Andreas Kuhn, 2009. "To shape the future: How labor market entry conditions affect individuals' long-run wage profiles," IEW - Working Papers 457, Institute for Empirical Research in Economics - University of Zurich.
  3. Torberg Falch & Kaare Johansen & Bjarne Stroem, 2008. "Teacher shortages and the business cycle," Working Paper Series 9608, Department of Economics, Norwegian University of Science and Technology.
  4. Beatrice Brunner & Andreas Kuhn, 2010. "The Impact of Labor Market Entry Condition on Initial Job Assignment, Human Capital Accumulation, and Wages," NRN working papers 2010-15, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  5. Ofer Malamud & Abigail Wozniak, 2008. "The Impact of College Graduation on Geographic Mobility: Identifying Education Using Multiple Components of Vietnam Draft Risk," Working Papers 0811, Harris School of Public Policy Studies, University of Chicago.
  6. Matthew Gentzkow & Jesse M. Shapiro, 2010. "What Drives Media Slant? Evidence From U.S. Daily Newspapers," Econometrica, Econometric Society, vol. 78(1), pages 35-71, 01.
  7. Brunner, Beatrice & Kuhn, Andreas, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles," IZA Discussion Papers 4601, Institute for the Study of Labor (IZA).

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